ESG For Healthcare

Laboratory

Providers, payers, and pharmaceutical and life sciences organizations have historically embraced the social pillar of environmental, social, and governance (ESG) efforts, caring for patients and creating medications, vaccines, and devices that improve human health and save lives. 

For-profit and not-for-profit healthcare organizations have different motivators, audiences, and reporting requirements when it comes to ESG, but both serve communities that are increasingly aware of what socially responsible organizations look like. Additionally, government bodies, regulators, investors, and consumers have increased expectations for responsible business practices. Providers and payers have ample opportunities to differentiate themselves by improving their reporting and storytelling around ESG, and to build trust with the communities they serve, and with investors, donors, and other stakeholders.

Embed ESG in your strategy and purpose 

It's as many healthcare organizations have the opportunity to move beyond press releases to build meaningful ESG efforts throughout their business — from their supply chains to environmental footprints, from recruiting efforts to executive leadership composition. As any ESG strategy should, these steps mostly already align with organizations’ overall mission to improve community health. Broader public awareness about sustainability and corporate responsibility means organizations can differentiate themselves by acting early to build ESG strategies that can enhance reputations with customers, employees, investors, and analysts. ESG is a critical driver to capture opportunities and keep ahead of vulnerability.

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Measure for transparency and accountability
Scientist with Test Tubes

Some healthcare organizations may be able to take giant leaps in their ESG reporting by better measuring and quantifying what they are already doing in these arenas, to be sure they are sharing the value they are already creating for society. It may require new processes to capture data, or working with third parties, but healthcare leaders can use proven tactics and smarter technologies to identify, measure and hold their business accountable to ESG principles. Some have already started expanding data collection efforts to better report on societal racial inequities in outcomes and the steps they are taking to address them. Healthcare organizations can take a proactive approach to telling their story — to employees, customers, shareholders, suppliers and other stakeholders — using these trusted metrics and disclosures.